Bitcoin Price Breaks; Recovery Tonight?
In this morning’s bitcoin price watch article, we focused on a pretty narrow range in an attempt to combine our intraday breakout strategy with some scalp targets to draw quick profit from the market on any volatility. Action has now matured throughout the session, and we are heading into what looks like its going to be a pretty interesting evening. The Asian session has, over the last few weeks, traditionally been the session that has given us the most gains. This isn’t set in stone, but chances are we will see a continuation of this trend throughout tonight’s trading. If we do, we want to be ready, so let’s try and alter this morning’s parameters in response to the day’s action, and set up some entry levels ahead of Asia. As always, take a quick look at the chart to get an idea of tonight’s range.
One thing to keep in mind is that – while perhaps not as large as in the western world – the approaching New Year will likely impact volume out of Asia. Japanese markets close for the day, and many schools and businesses in China shut down, meaning market participation could be sparse. This doesn’t mean we wont get any action, just that it might be choppy and volatile, so we need to keep our risk parameters tight.
As the chart shows, and in response to today’s action, we are looking at 420.76 to the downside as in term support, and 428.26 to the upside as in term resistance. These levels define tonight’s range.
If we get a break (and a close) above in term resistance, we will take a long position towards an immediate upside target of 435.01, with a stop around 426 defining our risk.
On the other side of our strategy, a close below 420.76 will put us short towards 415, and a stop at 422 will keep things positive on the risk/reward front.
Charts courtesy of Trading View